EX-99.1 2 d51816dex991.htm PRESS RELEASE AND EARNINGS RELEASE ATTACHMENTS Press release and earnings release attachments

Exhibit 99.1

 

LOGO    News Release

 

Contact:    Dan Eggers
   Investor Relations
   312-394-2345
   Paul Adams
   Corporate Communications
   410-470-4167

EXELON ANNOUNCES FIRST QUARTER 2016 RESULTS

CHICAGO (May 6, 2016) — Exelon Corporation (NYSE: EXC) announced first quarter 2016 consolidated earnings as follows:

 

     First Quarter  
     2016      2015  

Adjusted (non-GAAP) Operating Results:

     

Net Income ($ millions)

   $ 632       $ 615   

Diluted Earnings per Share

   $ 0.68       $ 0.71   
  

 

 

    

 

 

 

GAAP Results:

     

Net Income ($ millions)

   $ 173       $ 693   

Diluted Earnings per Share

   $ 0.19       $ 0.80   
  

 

 

    

 

 

 

“We are delighted to have closed the PHI acquisition during the first quarter, establishing Exelon Utilities as the largest utility in the U.S. by number of customers and also delivering on our commitment to increase the earnings mix from regulated and contracted businesses,” said Christopher M. Crane, Exelon’s president and CEO. “Unfortunately, we are also announcing plans to retire the economically challenged Clinton and Quad Cities nuclear plants in Illinois on June 1, 2017 and June 1, 2018, respectively, without passage of adequate legislation in the current spring legislative session and Quad Cities clearing in the 2019-20 RPM capacity auction.”

 

1


First Quarter Operating Results

As shown in the table above, Exelon’s adjusted (non-GAAP) Operating Earnings decreased to $0.68 per share in the first quarter of 2016 from $0.71 per share in the first quarter of 2015. Exclusive of $0.03 unfavorable earnings impacts of the PHI acquisition and other financing arrangements, quarter over quarter Operating Earnings are essentially flat reflecting:

 

    Nuclear refueling outage timing, fewer non-refueling outage days and increased capacity pricing offset by lower realized energy pricing and increased nuclear decommissioning amortization expense at Generation; and

 

    Favorable impacts at the utilities of regulatory rate increases mostly offset by less favorable weather.

First quarter 2016 results also include $2 million, net of tax, of PHI Operating Earnings from March 24, 2016 to March 31, 2016.

Adjusted (non-GAAP) Operating Earnings for the first quarter of 2016 do not include the following items (after tax) that were included in reported GAAP Net Income:

 

     (in millions)      (per diluted share)  

Exelon Adjusted (non-GAAP) Operating Earnings

   $ 632       $ 0.68   

Mark-to-Market Impact of Economic Hedging Activities

     64         0.07   

Unrealized Gains Related to NDT Fund Investments

     31         0.03   

Amortization of Commodity Contract Intangibles

     12         0.01   

Merger and Integration Costs(1)

     (76      (0.08

Merger Commitments(2)

     (394      (0.42

Long-Lived Asset Impairment

     (71      (0.07

Cost Management Program

     (14      (0.02

CENG Non-Controlling Interest

     (11      (0.01
  

 

 

    

 

 

 

Exelon GAAP Net Income

   $ 173       $ 0.19   
  

 

 

    

 

 

 

 

(1) Includes a pre-tax charge to GAAP earnings of approximately $52 million of PHI related merger severance.
(2) Approval of the merger across all regulatory jurisdictions was conditioned on Exelon and PHI agreeing to certain commitments pursuant to which Exelon recorded a total pre-tax charge to GAAP earnings of $508 million.

 

2


Adjusted (non-GAAP) Operating Earnings for the first quarter of 2015 do not include the following items (after tax) that were included in reported GAAP Net Income:

 

     (in millions)      (per diluted share)  

Exelon Adjusted (non-GAAP) Operating Earnings

   $ 615       $ 0.71   

Mark-to-Market Impact of Economic Hedging Activities

     100         0.11   

Unrealized Gains Related to NDT Fund Investments

     24         0.03   

Amortization of Commodity Contract Intangibles

     24         0.03   

Merger and Integration Costs

     (21      (0.02

Mark-to-Market Impact of PHI Merger Related Interest Rate Swap

     (48      (0.06

Midwest Generation Bankruptcy Recoveries

     6         0.01   

CENG Non-Controlling Interest

     (7      (0.01
  

 

 

    

 

 

 

Exelon GAAP Net Income

   $ 693       $ 0.80   
  

 

 

    

 

 

 

First Quarter and Recent Highlights

 

    PHI Acquisition: On March 23, 2016, Exelon completed the all cash $7 billion acquisition of PHI. As such, Exelon’s first quarter 2016 earnings include the consolidated results of PHI for the period March 24, 2016, to March 31, 2016. Approval of the merger across all jurisdictions was conditioned upon Exelon agreeing to certain commitments providing direct benefits to customers, for which Exelon recorded a total pre-tax charge of $508 million (or $394 million after-tax) in the first quarter 2016, which has been excluded from adjusted (non-GAAP) Operating earnings.

 

    Early Retirement of Clinton and Quad Cities Nuclear Facilities: In 2015, Exelon and Generation deferred retirement decisions on Clinton and Quad Cities until 2016 in order to participate in the 2016-2017 MISO primary reliability auction and the 2019-2020 PJM capacity auction to be held in April and May 2016, respectively, as well as to provide Illinois policy makers with additional time to consider needed reforms and for MISO to consider market design changes to ensure long-term power system reliability in southern Illinois. In April 2016, Clinton cleared the MISO primary reliability auction as a price taker for the 2016-2017 planning year. The resulting capacity price is insufficient to cover cash operating costs and a risk-adjusted rate of return to shareholders. The results of the 2019-2020 PJM capacity auction will be available on May 24, 2016. On May 6, 2016 Exelon and Generation announced intentions to shut down the Clinton nuclear plant on June 1, 2017 and Quad Cities nuclear plant on June 1, 2018 if Illinois does not pass adequate legislation by May 31, 2016 and if Quad Cities does not clear the 2019-2020 PJM capacity auction.

 

   

Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station and 100 percent of the CENG units, produced 44,802 gigawatt-hours (GWh) in the first quarter of 2016, compared with 42,657GWh in the first quarter of 2015. Excluding Salem, the Exelon-operated

 

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nuclear plants at ownership achieved a 95.8 percent capacity factor for the first quarter of 2016, compared with 92.7 percent for the first quarter of 2015. The number of planned refueling outage days in the first quarter of 2016 totaled 70, compared with 89 in the first quarter of 2015. There were 10 non-refueling outage days in the first quarter of 2016, compared with 32 days in the first quarter of 2015.

 

    Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas and hydro fleet was 93.5 percent in the first quarter of 2016, compared with 98.0 percent in the first quarter of 2015. The lower performance in the quarter was primarily due to an unplanned outage in January at Mystic 8 and 9, in Massachusetts. Energy Capture for the wind and solar fleet was 96.2 percent in the first quarter of 2016, compared with 95.9 percent in the first quarter of 2015.

 

    Ginna Nuclear Power Plant Reliability Support Services Agreement (RSSA): In April 2016, FERC and NYPSC approved an RSSA under which Ginna would continue to operate during the RSSA term and, in return, Ginna would be paid revenues to compensate it for the reliability benefits that it provides to the transmission grid. Generation will also recognize a one-time revenue adjustment in April 2016 of approximately $101 million representing the net cumulative previously unrecognized amount of revenue retroactive from the April 1, 2015 effective date through March 31, 2016. A 49.99 percent portion of the one-time adjustment will be removed from Generation’s results by the non-controlling interest in CENG.

 

    Pepco Electric Distribution Rate Case: On April 19, 2016, Pepco filed an application with the MDPSC requesting an increase of $127 million to its annual service revenues for electric delivery, based on a requested ROE of 10.6 percent. Any adjustments to rates approved by the MDPSC are expected to take effect in November 2016.

 

    ACE Electric Distribution Rate Case: On March 22, 2016, ACE filed an application with the NJBPU requesting an increase of $84 million to its annual service revenues for electric delivery, based on a requested ROE of 10.6 percent. A decision by the NJBPU is expected in the first half of 2017.

 

    Financing Activities: On April 7 2016, Exelon issued and sold $1.8 billion aggregate principal amount of notes consisting of $300 million of 2.450 percent Notes due in 2021, $750 million of 3.400 percent Notes due in 2026 and $750 million of 4.450 percent Notes due in 2046. A portion of the proceeds of the Notes will be used to repay commercial paper issued by PHI and for general corporate purposes, which may include the repayment of outstanding indebtedness.

 

   

Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. This strategy has not changed as a result of recent and pending

 

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asset divestitures. The proportion of expected generation hedged as of March 31, 2016, is 96.0 percent to 99.0 percent for 2016, 69.0 percent to 72.0 percent for 2017, and 37.0 percent to 40.0 percent for 2018. Expected generation is the volume of energy that best represents our financial exposure through owned or contracted capacity. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment-grade balance sheet, while preserving its ability to participate in improving long-term market fundamentals.

Operating Company Results

ComEd consists of electricity transmission and distribution operations in Northern Illinois.

ComEd’s first quarter 2016 GAAP Net Income was $115 million compared with $90 million in the first quarter of 2015.    Adjusted (non-GAAP) Operating Earnings for the first quarter of 2016 and 2015 do not include merger and integration costs that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is presented in the table below:

 

($ millions)

   1Q16      1Q15  

ComEd Adjusted (non-GAAP) Operating Earnings

   $ 110       $ 92   

Merger and Integration Costs

     5         (2
  

 

 

    

 

 

 

ComEd GAAP Net Income

   $ 115       $ 90   
  

 

 

    

 

 

 

ComEd’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2016 increased by $18 million from the same quarter in 2015, primarily due to higher electric distribution and transmission formula rate earnings, partially offset by less favorable weather.

For the first quarter of 2016, heating degree-days in the ComEd service territory were down 20.2 percent relative to the same period in 2015 and were 8.3 percent below normal. Total retail deliveries decreased by 4.6 percent in the first quarter of 2016 compared with the same period in 2015.

Weather-normalized retail electric deliveries were slightly less in the first quarter of 2016 compared with the same period in 2015.

PECO consists of electricity transmission and distribution operations and retail natural gas distribution operations in Southeastern Pennsylvania.

 

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PECO’s first quarter 2016 GAAP Net Income was $124 million compared with $139 million in the first quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2016 and 2015 do not include certain items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is presented in the table below:

 

($ millions)

   1Q16      1Q15  

PECO Adjusted (non-GAAP) Operating Earnings

   $ 126       $ 140   

Merger and Integration Costs

     (1      (1

Cost Management Program

     (1      —     
  

 

 

    

 

 

 

PECO GAAP Net Income

   $ 124       $ 139   
  

 

 

    

 

 

 

PECO’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2016 decreased $14 million from the same quarter in 2015, primarily due to less favorable weather, partially offset by increased electric distribution revenue pursuant to the 2015 PAPUC authorized electric distribution rate increase effective January 1, 2016.

For the first quarter of 2016, heating degree-days in the PECO service territory were down 27.2 percent relative to the same period in 2015 and were 13.7 percent below normal. Total retail electric deliveries were down 8.2 percent compared with the first quarter of 2015. Natural gas deliveries (including both retail and transportation segments) in the first quarter of 2016 were down 20.1 percent compared with the same period in 2015.

Weather-normalized retail electric deliveries remained relatively consistent while gas deliveries increased 4.0 percent in the first quarter of 2016 compared with the same period in 2015. The increased gas volumes were driven primarily by moderate economic conditions and customer growth.

BGE consists of electricity transmission and distribution operations and retail natural gas distribution operations in Central Maryland.

BGE’s first quarter 2016 GAAP Net Income was $98 million, compared with $106 million in the first quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2015 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is presented in the table below:

 

($ millions)

   1Q16      1Q15  

BGE Adjusted (non-GAAP) Operating Earnings

   $ 100       $ 107   

Merger and Integration Costs

     (1      (1

Cost Management Program

     (1      —     
  

 

 

    

 

 

 

BGE GAAP Net Income

   $ 98       $ 106   
  

 

 

    

 

 

 

BGE’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2016 decreased $7 million from the same quarter in 2015, primarily due to increased storm costs in BGE’s service territory. Due to revenue decoupling, BGE is not affected by actual weather with the exception of major storms.

PHI consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware.

 

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PHI’s GAAP Net Loss from March 24-31, 2016 was $309 million. Adjusted (non-GAAP) Operating Earnings for the successor period do not include merger and integration costs and merger commitments that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is presented in the table below:

 

($ millions)

   March 24-31, 2016  

PHI Adjusted (non-GAAP) Operating Earnings

   $ 2   

Merger and Integration Costs

     (33

Merger Commitments

     (278
  

 

 

 

PHI GAAP Net Loss

   $ (309
  

 

 

 

Generation consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products, risk management services and natural gas exploration and production activities.

Generation’s first quarter 2016 GAAP Net Income was $310 million compared with $443 million in the first quarter of 2015. Adjusted (non-GAAP) Operating Earnings for the first quarter of 2016 and 2015 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)

   1Q16      1Q15  

Generation Adjusted (non-GAAP) Operating Earnings

   $ 315       $ 303   

Mark-to-Market Impact of Economic Hedging Activities

     64         100   

Unrealized Gains Related to NDT Fund Investments

     31         24   

Amortization of Commodity Contract Intangibles

     12         24   

Merger and Integration Costs

     (10      (7

Merger Commitments

     (2      —     

Midwest Generation Bankruptcy Recoveries

     —           6   

Long-Lived Asset Impairment

     (71      —     

Reassessment of State Deferred Income Taxes

     (6      —     

Cost Management Program

     (12      —     

CENG Non-Controlling Interest

     (11      (7
  

 

 

    

 

 

 

Generation GAAP Net Income

   $ 310       $ 443   
  

 

 

    

 

 

 

Generation’s Adjusted (non-GAAP) Operating Earnings in the first quarter of 2016 increased by $12 million compared with the same quarter in 2015. This increase primarily reflects nuclear refueling outage timing, fewer non-refueling outage days, and increased capacity pricing, partially offset by lower realized energy prices and increased nuclear decommissioning amortization expense.

 

7


Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) Operating Earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) Operating Earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP Net Income to adjusted (non-GAAP) Operating Earnings for historical periods is attached. Additional earnings release attachments are posted on Exelon’s Web site: www.exeloncorp.com and have been furnished to the Securities and Exchange Commission on Form 8-K on May 6, 2016.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC (PHI), Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2015 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 23; (2) PHI’s 2015 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 16; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

# # #

Exelon Corporation (NYSE: EXC), now including the Pepco Holdings utilities, is the nation’s leading competitive energy provider, with 2015 revenues of approximately $34.5 billion. Headquartered in Chicago, Exelon does business in 48 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with more than 32,700 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector and business customers, including more than two-thirds of the Fortune 100. Exelon’s six utilities deliver electricity and natural gas to approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO and Pepco subsidiaries. Follow Exelon on Twitter @Exelon.

 

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Earnings Release Attachments

Table of Contents

 

Consolidating Statements of Operations - Three Months Ended March 31, 2016 and 2015

     2   

Business Segment Comparative Statements of Operations - Generation and ComEd - Three months ended March 31, 2016 and 2015

     3   

Business Segment Comparative Statements of Operations - PECO and BGE - Three months ended March 31, 2016 and 2015

     4   

Business Segment Comparative Statements of Operations - PHI and Other - Three months ended March 31, 2016 and 2015

     5   

Consolidated Balance Sheets - March 31, 2016 and December 31, 2015

     6   

Consolidated Statements of Cash Flows - Three Months Ended March 31, 2016 and 2015

     7   

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended March 31, 2016 and 2015

     8   

Exelon Generation Statistics - Three Months Ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015

     10   

ComEd Statistics - Three months ended March 31, 2016 and 2015

     11   

PECO Statistics - Three months ended March 31, 2016 and 2015

     12   

BGE Statistics - Three months ended March 31, 2016 and 2015

     13   

Pepco Statistics - Three months ended March 31, 2016 and 2015

     14   

DPL Statistics - Three months ended March 31, 2016 and 2015

     15   

ACE Statistics - Three months ended March 31, 2016 and 2015

     16   


EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

     Three Months Ended March 31, 2016  
                                         Exelon  
     Generation     ComEd     PECO     BGE     PHI (a)     Other (b)     Consolidated  

Operating revenues

   $ 4,739      $ 1,249      $ 841      $ 929      $ 105      $ (290   $ 7,573   

Operating expenses

              

Purchased power and fuel

     2,442        348        321        373        38        (268     3,254   

Operating and maintenance

     1,467        368        215        202        449        134        2,835   

Depreciation and amortization

     289        189        67        109        14        17        685   

Taxes other than income

     126        75        42        58        15        9        325   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     4,324        980        645        742        516        (108     7,099   

Gain on sales of assets

     —          5        —          —          —          4        9   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     415        274        196        187        (411     (178     483   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other income and (deductions)

              

Interest expense, net

     (97     (86     (31     (24     (11     (43     (292

Other, net

     93        4        2        4        7        9        119   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (4     (82     (29     (20     (4     (34     (173
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     411        192        167        167        (415     (212     310   

Income taxes

     151        77        43        66        (106     (47     184   

Equity in losses of unconsolidated affiliates

     (3     —          —          —          —          —          (3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     257        115        124        101        (309     (165     123   

Net (loss) income attributable to noncontrolling interests and preference stock dividends

     (53     —          —          3        —          —          (50
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common shareholders

   $ 310      $ 115      $  124      $ 98      $ (309   $ (165   $ 173   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     Three Months Ended March 31, 2015  
                                         Exelon  
     Generation     ComEd     PECO     BGE     PHI (a)     Other (b)     Consolidated  

Operating revenues

   $ 5,840      $ 1,185      $ 985      $ 1,036      $ —        $ (216   $ 8,830   

Operating expenses

              

Purchased power and fuel

     3,433        327        438        487        —          (215     4,470   

Operating and maintenance

     1,311        378        222        182        —          (12     2,081   

Depreciation and amortization

     254        175        62        106        —          13        610   

Taxes other than income

     122        75        41        57        —          9        304   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     5,120        955        763        832        —          (205     7,465   

(Loss) gain on sales of assets

     (1     —          1        —          —          1        1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     719        230        223        204        —          (10     1,366   

Other income and (deductions)

              

Interest expense, net

     (102     (84     (28     (25     —          (106     (345

Other, net

     94        3        2        4        —          (23     80   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (8     (81     (26     (21     —          (129     (265
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     711        149        197        183        —          (139     1,101   

Income taxes

     226        59        58        74        —          (54     363   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     485        90        139        109        —          (85     738   

Net income attributable to noncontrolling interests and preference stock dividends

     42        —          —          3        —          —          45   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common shareholders

   $ 443      $ 90      $ 139      $ 106      $ —        $ (85   $ 693   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) PHI includes the consolidated results of Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company from March 24, 2016 to March 31, 2016.
(b) Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

 

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EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

     Generation  
     Three Months Ended March 31,  
     2016     2015     Variance  

Operating revenues

   $ 4,739      $ 5,840      $ (1,101

Operating expenses

      

Purchased power and fuel

     2,442        3,433        (991

Operating and maintenance

     1,467        1,311        156   

Depreciation and amortization

     289        254        35   

Taxes other than income

     126        122        4   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     4,324        5,120        (796

Loss on sales of assets

     —          (1     1   
  

 

 

   

 

 

   

 

 

 

Operating income

     415        719        (304
  

 

 

   

 

 

   

 

 

 

Other income and (deductions)

      

Interest expense

     (97     (102     5   

Other, net

     93        94        (1
  

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (4     (8     4   
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     411        711        (300

Income taxes

     151        226        (75

Equity in losses of unconsolidated affiliates

     (3     —          (3
  

 

 

   

 

 

   

 

 

 

Net income

     257        485        (228

Net (loss) income attributable to noncontrolling interests and preference stock dividends

     (53     42        (95
  

 

 

   

 

 

   

 

 

 

Net income attributable to membership interest

   $ 310      $ 443      $ (133
  

 

 

   

 

 

   

 

 

 
     ComEd  
     Three Months Ended March 31,  
     2016     2015     Variance  

Operating revenues

   $ 1,249      $ 1,185      $ 64   

Operating expenses

      

Purchased power

     348        327        21   

Operating and maintenance

     368        378        (10

Depreciation and amortization

     189        175        14   

Taxes other than income

     75        75        —     
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     980        955        25   

Gain on sales of assets

     5        —          5   
  

 

 

   

 

 

   

 

 

 

Operating income

     274        230        44   
  

 

 

   

 

 

   

 

 

 

Other income and (deductions)

      

Interest expense

     (86     (84     (2

Other, net

     4        3        1   
  

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (82     (81     (1
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     192        149        43   

Income taxes

     77        59        18   
  

 

 

   

 

 

   

 

 

 

Net income

   $ 115      $ 90      $ 25   
  

 

 

   

 

 

   

 

 

 

 

3


EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

     PECO  
     Three Months Ended March 31,  
     2016     2015     Variance  

Operating revenues

   $ 841      $ 985      $ (144

Operating expenses

      

Purchased power and fuel

     321        438        (117

Operating and maintenance

     215        222        (7

Depreciation and amortization

     67        62        5   

Taxes other than income

     42        41        1   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     645        763        (118

Gain on sales of assets

     —          1        (1
  

 

 

   

 

 

   

 

 

 

Operating income

     196        223        (27
  

 

 

   

 

 

   

 

 

 

Other income and (deductions)

      

Interest expense, net

     (31     (28     (3

Other, net

     2        2        —     
  

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (29     (26     (3
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     167        197        (30

Income taxes

     43        58        (15
  

 

 

   

 

 

   

 

 

 

Net income attributable to common shareholder

   $ 124      $ 139      $ (15
  

 

 

   

 

 

   

 

 

 
     BGE  
     Three Months Ended March 31,  
     2016     2015     Variance  

Operating revenues

   $ 929      $ 1,036      $ (107

Operating expenses

      

Purchased power and fuel

     373        487        (114

Operating and maintenance

     202        182        20   

Depreciation and amortization

     109        106        3   

Taxes other than income

     58        57        1   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     742        832        (90
  

 

 

   

 

 

   

 

 

 

Operating income

     187        204        (17
  

 

 

   

 

 

   

 

 

 

Other income and (deductions)

      

Interest expense, net

     (24     (25     1   

Other, net

     4        4        —     
  

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (20     (21     1   
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     167        183        (16

Income taxes

     66        74        (8
  

 

 

   

 

 

   

 

 

 

Net income

     101        109        (8

Preference stock dividends

     3        3        —     
  

 

 

   

 

 

   

 

 

 

Net income attributable to common shareholders

   $ 98      $ 106      $ (8
  

 

 

   

 

 

   

 

 

 

 

4


EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

     PHI (a)  
     Three Months Ended March 31,  
     2016     2015     Variance  

Operating revenues

   $ 105      $ —        $ 105   

Operating expenses

      

Purchased power and fuel

     38        —          38   

Operating and maintenance

     449        —          449   

Depreciation and amortization

     14        —          14   

Taxes other than income

     15        —          15   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     516        —          516   
  

 

 

   

 

 

   

 

 

 

Operating loss

     (411     —          (411
  

 

 

   

 

 

   

 

 

 

Other income and (deductions)

      

Interest expense, net

     (11     —          (11

Other, net

     7        —          7   
  

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (4     —          (4
  

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (415     —          (415

Income taxes

     (106     —          (106
  

 

 

   

 

 

   

 

 

 

Net loss

   $ (309   $ —        $ (309
  

 

 

   

 

 

   

 

 

 
     Other (b)  
     Three Months Ended March 31,  
     2016     2015     Variance  

Operating revenues

   $ (290   $ (216   $ (74

Operating expenses

      

Purchased power and fuel

     (268     (215     (53

Operating and maintenance

     134        (12     146   

Depreciation and amortization

     17        13        4   

Taxes other than income

     9        9        —     
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     (108     (205     97   

Gain on sales of assets

     4        1        3   
  

 

 

   

 

 

   

 

 

 

Operating loss

     (178     (10     (168
  

 

 

   

 

 

   

 

 

 

Other income and (deductions)

      

Interest expense, net

     (43     (106     63   

Other, net

     9        (23     32   
  

 

 

   

 

 

   

 

 

 

Total other income and (deductions)

     (34     (129     95   
  

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (212     (139     (73

Income taxes

     (47     (54     7   
  

 

 

   

 

 

   

 

 

 

Net loss

   $ (165   $ (85   $ (80
  

 

 

   

 

 

   

 

 

 

 

(a) PHI includes the consolidated results of Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company from March 24, 2016 to March 31, 2016. Exelon did not own PHI in 2015.
(b) Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

 

5


EXELON CORPORATION

Consolidated Balance Sheets

 

(in millions)    March 31, 2016     December 31, 2015  
     (unaudited)        

Assets

    

Current assets

    

Cash and cash equivalents

   $ 960      $ 6,502   

Restricted cash and cash equivalents

     218        205   

Accounts receivable, net

    

Customer

     3,594        3,187   

Other

     1,138        912   

Mark-to-market derivative assets

     1,185        1,365   

Unamortized energy contract assets

     85        86   

Inventories, net

    

Fossil fuel and emission allowances

     285        462   

Materials and supplies

     1,229        1,104   

Regulatory assets

     1,584        759   

Other

     1,086        752   
  

 

 

   

 

 

 

Total current assets

     11,364        15,334   
  

 

 

   

 

 

 

Property, plant and equipment, net

     69,406        57,439   

Deferred debits and other assets

    

Regulatory assets

     10,407        6,065   

Nuclear decommissioning trust funds

     10,526        10,342   

Investments

     455        639   

Goodwill

     6,688        2,672   

Mark-to-market derivative assets

     841        758   

Unamortized energy contracts assets

     474        484   

Pledged assets for Zion Station decommissioning

     183        206   

Other

     1,398        1,445   
  

 

 

   

 

 

 

Total deferred debits and other assets

     30,972        22,611   
  

 

 

   

 

 

 

Total assets

   $ 111,742      $ 95,384   
  

 

 

   

 

 

 

Liabilities and shareholders’ equity

    

Current liabilities

    

Short-term borrowings

   $ 3,640      $ 533   

Long-term debt due within one year

     2,058        1,500   

Accounts payable

     2,956        2,883   

Accrued expenses

     2,260        2,376   

Payables to affiliates

     8        8   

Regulatory liabilities

     512        369   

Mark-to-market derivative liabilities

     203        205   

Unamortized energy contract liabilities

     582        100   

Renewable energy credit obligation

     308        302   

Other

     1,243        842   
  

 

 

   

 

 

 

Total current liabilities

     13,770        9,118   
  

 

 

   

 

 

 

Long-term debt

     29,314        23,645   

Long-term debt to financing trusts

     641        641   

Deferred credits and other liabilities

    

Deferred income taxes and unamortized investment tax credits

     17,474        13,776   

Asset retirement obligations

     8,755        8,585   

Pension obligations

     3,771        3,385   

Non-pension postretirement benefit obligations

     1,902        1,618   

Spent nuclear fuel obligation

     1,022        1,021   

Regulatory liabilities

     4,378        4,201   

Mark-to-market derivative liabilities

     408        374   

Unamortized energy contract liabilities

     1,144        117   

Payable for Zion Station decommissioning

     72        90   

Other

     1,886        1,491   
  

 

 

   

 

 

 

Total deferred credits and other liabilities

     40,812        34,658   
  

 

 

   

 

 

 

Total liabilities

     84,537        68,062   
  

 

 

   

 

 

 

Commitments and contingencies

    

Contingently redeemable noncontrolling interest

     19        28   

Shareholders’ equity

    

Common stock

     18,686        18,676   

Treasury stock, at cost

     (2,327     (2,327

Retained earnings

     11,954        12,068   

Accumulated other comprehensive loss, net

     (2,596     (2,624
  

 

 

   

 

 

 

Total shareholders’ equity

     25,717        25,793   

BGE preference stock not subject to mandatory redemption

     193        193   

Noncontrolling interest

     1,276        1,308   
  

 

 

   

 

 

 

Total equity

     27,186        27,294   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 111,742      $ 95,384   
  

 

 

   

 

 

 

 

6


EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

     Three Months Ended March 31,  
     2016     2015  

Cash flows from operating activities

    

Net income

   $ 123      $ 738   

Adjustments to reconcile net income to net cash flows provided by operating activities:

    

Depreciation, amortization, depletion and accretion, including nuclear fuel and energy contract amortization

     1,063        948   

Impairment of long-lived assets

     119        —     

Gain on sales of assets

     (9     (1

Deferred income taxes and amortization of investment tax credits

     127        129   

Net fair value changes related to derivatives

     (107     (91

Net realized and unrealized gains on nuclear decommissioning trust fund investments

     (55     (47

Other non-cash operating activities

     808        344   

Changes in assets and liabilities:

    

Accounts receivable

     117        (270

Inventories

     142        291   

Accounts payable and accrued expenses

     (585     (468

Option premiums received, net

     17        5   

Collateral received, net

     206        257   

Income taxes

     47        174   

Pension and non-pension postretirement benefit contributions

     (239     (269

Other assets and liabilities

     (296     (250
  

 

 

   

 

 

 

Net cash flows provided by operating activities

     1,478        1,490   
  

 

 

   

 

 

 

Cash flows from investing activities

    

Capital expenditures

     (2,188     (1,784

Proceeds from nuclear decommissioning trust fund sales

     2,240        1,681   

Investment in nuclear decommissioning trust funds

     (2,297     (1,747

Acquisition of businesses, net of cash acquired

     (6,645     (15

Proceeds from sale of long-lived assets

     —          142   

Proceeds from termination of direct financing lease investment

     360        —     

Change in restricted cash

     (2     (26

Other investing activities

     (21     (2
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (8,553     (1,751
  

 

 

   

 

 

 

Cash flows from financing activities

    

Changes in short-term borrowings

     1,647        (141

Proceeds from short-term borrowings with maturities greater than 90 days

     123        —     

Issuance of long-term debt

     151        1,206   

Retirement of long-term debt

     (116     (580

Dividends paid on common stock

     (287     (269

Proceeds from employee stock plans

     9        8   

Other financing activities

     6        (16
  

 

 

   

 

 

 

Net cash flows provided by financing activities

     1,533        208   
  

 

 

   

 

 

 

Decrease in cash and cash equivalents

     (5,542     (53

Cash and cash equivalents at beginning of period

     6,502        1,878   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 960      $ 1,825   
  

 

 

   

 

 

 

 

7


EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Three Months Ended March 31, 2016 and 2015

(unaudited)

 

    Exelon
Earnings per
Diluted
Share
    Generation     ComEd     PECO     BGE     PHI
(a)
    Other
(b)
    Exelon  

2015 GAAP Earnings (Loss)

  $ 0.80      $ 443      $ 90      $ 139      $ 106      $ —        $  (85)      $ 693   

2015 Adjusted (non-GAAP) Operating (Earnings) Loss Adjustments:

               

Mark-to-Market Impact of Economic Hedging Activities

    (0.11     (100     —          —          —          —          —          (100

Unrealized Gains Related to NDT Fund Investments (1)

    (0.03     (24     —          —          —          —          —          (24

Amortization of Commodity Contract Intangibles (2)

    (0.03     (24     —          —          —          —          —          (24

Merger and Integration Costs (3)

    0.02        7        2        1        1        —          10        21   

Mark-to-Market Impact of PHI Merger Related Interest

               

Rate Swap (4)

    0.06        —          —          —          —          —          48        48   

Midwest Generation Bankruptcy Recoveries (5)

    (0.01     (6     —          —          —          —          —          (6

CENG Non-Controlling Interest (6)

    0.01        7        —          —          —          —          —          7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2015 Adjusted (non-GAAP) Operating Earnings (Loss)

    0.71        303        92        140        107        —          (27     615   

Year Over Year Effects on Earnings:

               

Generation Energy Margins, Excluding Mark-to-Market:

               

Nuclear Volume (11)

    0.06        61        —          —          —          —          —          61   

Nuclear Fuel Cost

    —          (4     —          —          —          —          —          (4

Capacity Pricing (12)

    0.02        16        —          —          —          —          —          16   

Market and Portfolio Conditions (13)

    (0.10     (91     —          —          —          —          —          (91

ComEd, PECO, BGE and PHI Margins:

               

Weather

    (0.06     —          (12     (42     —   (c)      —   (c)      —          (54

Load

    —          —          (2     5        —   (c)      —   (c)      —          3   

Other Energy Delivery (14)

    0.11        —          35 (d)      21 (d)      4 (d)      39 (d)      —          99   

Operating and Maintenance Expense:

               

Labor, Contracting and Materials

    (0.02     (5     (1     1        (1     (13     —          (19

Planned Nuclear Refueling Outages (15)

    0.01        7        —          —          —          —          —          7   

Pension and Non-Pension Postretirement Benefits (16)

    0.01        7        3        1        —          (2     1        10   

Other Operating and Maintenance (17)

    (0.02     (11     2        4        (10     (3     1        (17

Depreciation and Amortization Expense (18)

    (0.05     (21     (8     (3     (2     (8     (2     (44

Interest Expense, Net (19)

    (0.02     1        (1     (2     —          (3     (13     (18

Income Taxes

    —          (3     (2     3        2        —          1        1   

Equity in Earnings of Unconsolidated Affiliates

    —          (2     —          —          —          —          —          (2

CENG Non-Controlling Interest (20)

    0.06        60        —          —          —          —          —          60   

Other (21)

    0.01        (3     4        (2     —          (8     18        9   

Share Differential (22)

    (0.04     —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2016 Adjusted (non-GAAP) Operating Earnings (Loss)

    0.68        315        110        126        100        2        (21     632   

2016 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:

               

Mark-to-Market Impact of Economic Hedging Activities

    0.07        64        —          —          —          —          —          64   

Unrealized Gains Related to NDT Fund Investments (1)

    0.03        31        —          —          —          —          —          31   

Amortization of Commodity Contract Intangibles (2)

    0.01        12        —          —          —          —          —          12   

Merger and Integration Costs (3)

    (0.08     (10     5        (1     (1     (33     (36     (76

Merger Commitments (7)

    (0.42     (2     —          —          —          (278     (114     (394

Long-Lived Asset Impairment (8)

    (0.07     (71     —          —          —          —          —          (71

Reassessment of State Deferred Income Taxes (9)

    —          (6     —          —          —          —          6        —     

Cost Management Program (10)

    (0.02     (12     —          (1     (1     —          —          (14

CENG Non-Controlling Interest (6)

    (0.01     (11     —          —          —          —          —          (11
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

2016 GAAP Earnings (Loss)

  $ 0.19      $ 310      $  115      $ 124      $ 98      $  (309)      $  (165)      $ 173   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Note:

 

(a) As a result of the PHI acquisition completion on March 23, 2016, the table includes financial results for PHI beginning on March 24, 2016 to March 31, 2016. Therefore, the results of operations from 2016 and 2015 are not comparable for PHI and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations. PHI consolidated results includes Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company.
(b) Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
(c) As approved by the Maryland PSC and District of Columbia PSC, BGE, Pepco and DPL Maryland record a monthly adjustment to rates for residential, commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes.
(d) For regulatory recovery mechanisms, including ComEd’s distribution formula rate, ComEd, BGE and PHI utilities transmission formula rates, and riders across all utilities, revenues increase and decrease i) as fully recoverable costs fluctuate (with no impact on net earnings), and ii) pursuant to changes in rate base, capital structure and ROE (which impact net earnings).

 

8


(1) Reflects the impact of unrealized gains and losses on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.
(2) Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value related to the Integrys acquisition.
(3) Reflects certain costs associated with mergers and acquisitions, including, if and when applicable, professional fees, employee-related expenses, integration activities, upfront credit facilities fees, merger commitments and certain pre-acquisition contingencies, partially offset in 2016 at ComEd by the pending recovery of previously incurred PHI acquisition costs.
(4) Reflects the impact of mark-to-market activity on forward-starting interest rate swaps held at Exelon Corporate related to financing for the PHI acquisition, which were terminated on June 8, 2015.
(5) Primarily reflects a 2015 benefit for the favorable settlement of a long-term railcar lease agreement pursuant to the Midwest Generation bankruptcy.
(6) Represents elimination from Generation’s results of the non-controlling interest related to CENG exclusion items, primarily related to the impact of unrealized gains and losses on NDT fund investments and mark-to-market activity.
(7) Represents costs incurred as part of the settlement orders approving the PHI acquisition.
(8) Primarily reflects the impairment of upstream assets at Generation in 2016.
(9) Reflects the non-cash impact of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment related to the PHI acquisition in 2016.
(10) Represents the severance expense and reorganization costs related to a cost management program in 2016.
(11) Primarily reflects nuclear refueling outage timing and fewer non-refueling outage days in 2016.
(12) Primarily reflects increased capacity prices in the Mid-Atlantic and Midwest regions, partially offset by decreased capacity prices in the New York market.
(13) Primarily reflects lower realized energy prices in the Midwest, New York and New England regions and increased oil inventory write-downs in Mid-Atlantic and New England.
(14) For ComEd, primarily reflects increased electric distribution and transmission formula rate revenues (due to increased capital investments), partially offset by a decrease in fully recoverable costs. For PECO, primarily reflects increased electric distribution revenue pursuant to the 2015 PAPUC authorized electric distribution rate increase effective January 1, 2016.
(15) Primarily reflects the impact of decreased refueling outage days in 2016.
(16) Primarily reflects favorable impact of higher pension and OPEB discount rates in 2016.
(17) For BGE, primarily reflects increased storm costs.
(18) Primarily reflects increased nuclear decommissioning amortization at Generation and ongoing capital expenditures at Generation and ComEd.
(19) At Corporate, primarily reflects increased interest expense due to higher outstanding debt to fund the PHI acquisition.
(20) Reflects elimination from Generation’s results of the non-controlling interest related to the net impact of CENG’s operating revenue and expenses.
(21) For Corporate, primarily reflects the absence of a 2015 loss on the termination of forward-starting interest rate swaps.
(22) Reflects the impact on earnings per share due to the increase in Exelon’s average diluted common shares outstanding as a result of the July 2015 common stock issuance.

 

9


EXELON CORPORATION

Exelon Generation Statistics

 

     Three Months Ended,  
     March 31, 2016      December 31,
2015
     September 30,
2015
     June 30, 2015      March 31, 2015  

Supply (in GWhs)

              

Nuclear Generation

              

Mid-Atlantic (a)

     16,208         15,500         16,446         15,619         15,718   

Midwest

     23,662         23,620         23,927         23,448         22,427   

New York (a)

     4,932         4,712         4,807         4,738         4,512   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Nuclear Generation

     44,802         43,832         45,180         43,805         42,657   

Fossil and Renewables

              

Mid-Atlantic

     898         746         719         750         559   

Midwest

     449         490         262         363         432   

New England

     1,924         408         1,840         135         600   

New York

     1         —           1         1         1   

ERCOT

     1,376         1,163         2,306         872         1,422   

Other (b)

     2,147         1,834         1,945         2,096         1,973   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Fossil and Renewables

     6,795         4,641         7,073         4,217         4,987   

Purchased Power

              

Mid-Atlantic

     3,755         1,441         3,511         1,384         1,824   

Midwest

     706         814         515         407         589   

New England

     4,155         6,372         5,787         5,742         6,408   

ERCOT

     2,294         2,501         2,422         2,903         2,244   

Other (b)

     2,600         4,636         5,812         4,616         3,758   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Purchased Power

     13,510         15,764         18,047         15,052         14,823   

Total Supply/Sales by Region (c)

              

Mid-Atlantic (d)

     20,861         17,687         20,676         17,753         18,101   

Midwest (d)

     24,817         24,924         24,704         24,218         23,448   

New England

     6,079         6,780         7,627         5,877         7,008   

New York

     4,933         4,712         4,808         4,739         4,513   

ERCOT

     3,670         3,664         4,728         3,775         3,666   

Other (b)

     4,747         6,470         7,757         6,712         5,731   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Supply/Sales by Region

     65,107         64,237         70,300         63,074         62,467   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Three Months Ended,  
     March 31, 2016      December 31,
2015
     September 30,
2015
     June 30, 2015      March 31, 2015  

Outage Days (e)

              

Refueling

     70         103         27         71         89   

Non-refueling

     10         21         11         18         32   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Outage Days

     80         124         38         89         121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and includes the total output of plants that are fully consolidated (e.g. CENG).
(b) Other Regions includes South, West and Canada, which are not considered individually significant.
(c) Total sales do not include physical trading volumes of 1,220 GWhs, 1,932 GWhs, 1,913 GWhs, 1,657 GWhs, and 1,808 GWhs for the three months ended March 31, 2016, December 31, 2015, September 30, 2015, June 30, 2015, and March 31, 2015 respectively.
(d) Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.
(e) Outage days exclude Salem.

 

10


EXELON CORPORATION

ComEd Statistics

Three Months Ended March 31, 2016 and 2015

 

     Electric Deliveries (in GWhs)     Revenue (in millions)  
     2016      2015      % Change     Weather-
Normal
% Change
    2016      2015      % Change  

Retail Deliveries and Sales (a)

                  

Residential

     6,376         6,997         (8.9 )%      (2.6 )%    $ 609       $ 568         7.2

Small Commercial & Industrial

     7,879         8,161         (3.5 )%      (0.2 )%      321         338         (5.0 )% 

Large Commercial & Industrial

     6,756         6,877         (1.8 )%      1.3     107         109         (1.8 )% 

Public Authorities & Electric

                  

Railroads

     361         379         (4.7 )%      (0.8 )%      12         12         —  
  

 

 

    

 

 

        

 

 

    

 

 

    

Total Retail

     21,372         22,414         (4.6 )%      (0.5 )%      1,049         1,027         2.1
  

 

 

    

 

 

        

 

 

    

 

 

    

Other Revenue (b)

               200         158         26.6
            

 

 

    

 

 

    

Total Electric Revenue

             $ 1,249       $ 1,185         5.4
            

 

 

    

 

 

    

Purchased Power

             $ 348       $ 327         6.4
            

 

 

    

 

 

    

 

                          % Change  
     2016      2015      Normal      From 2015     From Normal  

Heating and Cooling Degree-Days

             

Heating Degree-Days

     2,900         3,632         3,164         (20.2 )%      (8.3 )% 

Cooling Degree-Days

     —           —           —           N/A        N/A   

 

     2016      2015  

Number of Electric Customers

     

Residential

     3,566,896         3,511,271   

Small Commercial & Industrial

     372,254         369,424   

Large Commercial & Industrial

     1,955         1,966   

Public Authorities & Electric Railroads

     4,821         4,843   
  

 

 

    

 

 

 

Total

     3,945,926         3,887,504   
  

 

 

    

 

 

 

 

(a) Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy and transmission.
(b) Other revenue primarily includes transmission revenue from PJM. Other revenue includes rental revenues, revenues related to late payment charges, revenues from other utilities for mutual assistance programs and recoveries of remediation costs associated with MGP sites.

 

11


EXELON CORPORATION

PECO Statistics

Three Months Ended March 31, 2016 and 2015

 

     Electric and Gas Deliveries     Revenue (in millions)  
                         Weather-                      
                         Normal                      
     2016      2015      % Change     % Change     2016      2015      % Change  

Electric (in GWhs)

                  

Retail Deliveries and Sales (a)

                  

Residential

     3,415         3,968         (13.9 )%      1.3   $ 410       $ 450         (8.9 )% 

Small Commercial & Industrial

     2,025         2,162         (6.3 )%      4.8     119         115         3.5

Large Commercial & Industrial

     3,594         3,734         (3.7 )%      (3.1 )%      58         53         9.4

Public Authorities & Electric Railroads

     227         228         (0.4 )%      (0.4 )%      8         8         —  
  

 

 

    

 

 

        

 

 

    

 

 

    

Total Retail

     9,261         10,092         (8.2 )%      0.3     595         626         (5.0 )% 
  

 

 

    

 

 

        

 

 

    

 

 

    

Other Revenue (b)

               49         51         (3.9 )% 
            

 

 

    

 

 

    

Total Electric Revenue

               644         677         (4.9 )% 
            

 

 

    

 

 

    

Gas (in mmcfs)

                  

Retail Deliveries and Sales

                  

Retail Sales (c)

     27,111         34,863         (22.2 )%      4.6     187         296         (36.8 )% 

Transportation and Other

     7,696         8,696         (11.5 )%      1.4     10         12         (16.7 )% 
  

 

 

    

 

 

        

 

 

    

 

 

    

Total Gas

     34,807         43,559         (20.1 )%      4.0     197         308         (36.0 )% 
  

 

 

    

 

 

        

 

 

    

 

 

    

Total Electric and Gas Revenues

             $ 841       $ 985         (14.6 )% 
            

 

 

    

 

 

    

Purchased Power and Fuel

             $ 321       $ 438         (26.7 )% 
            

 

 

    

 

 

    

 

                          % Change  
Heating and Cooling Degree-Days    2016      2015      Normal      From 2015     From Normal  

Heating Degree-Days

     2,137         2,934         2,477         (27.2 )%      (13.7 )% 

Cooling Degree-Days

     5         —           1         N/A        400.0

 

Number of Electric Customers

  2016     2015    

Number of Gas Customers

  2016     2015  

Residential

    1,449,470        1,439,005     

Residential

    468,808        464,344   

Small Commercial & Industrial

    149,388        149,192     

Commercial & Industrial

    43,313        42,941   
       

 

 

   

 

 

 

Large Commercial & Industrial

    3,092        3,102     

Total Retail

    512,121        507,285   

Public Authorities & Electric Railroads

    9,807        9,771     

Transportation

    817        847   
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

    1,611,757        1,601,070     

Total

    512,938        508,132   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenue also reflects the cost of energy and transmission.
(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.
(c) Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.

 

12


EXELON CORPORATION

BGE Statistics

Three Months Ended March 31, 2016 and 2015

 

     Electric and Gas Deliveries     Revenue (in millions)  
     2016      2015      % Change     2016      2015      % Change  

Electric (in GWhs)

                

Retail Deliveries and Sales (a)

                

Residential

     3,479         4,173         (16.6 )%    $ 428       $ 449         (4.7 )% 

Small Commercial & Industrial

     774         845         (8.4 )%      73         76         (3.9 )% 

Large Commercial & Industrial

     3,219         3,439         (6.4 )%      100         120         (16.7 )% 

Public Authorities & Electric Railroads

     71         75         (5.3 )%      9         8         12.5
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Retail

     7,543         8,532         (11.6 )%      610         653         (6.6 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Other Revenue (b)

             70         60         16.7
          

 

 

    

 

 

    

Total Electric Revenue

             680         713         (4.6 )% 
          

 

 

    

 

 

    

Gas (in mmcfs)

                

Retail Deliveries and Sales (c)

                

Retail Sales

     38,584         46,877         (17.7 )%      238         299         (20.4 )% 

Transportation and Other (d)

     2,496         3,325         (24.9 )%      11         24         (54.2 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Gas

     41,080         50,202         (18.2 )%      249         323         (22.9 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Electric and Gas Revenues

           $ 929       $ 1,036         (10.3 )% 
          

 

 

    

 

 

    

Purchased Power and Fuel

           $ 373       $ 487         (23.4 )% 
          

 

 

    

 

 

    

 

                          % Change  
Heating and Cooling Degree-Days    2016      2015      Normal      From 2015     From Normal  

Heating Degree-Days

     2,280         2,950         2,412         (22.7 )%      (5.5 )% 

Cooling Degree-Days

     —           —           —           N/A        N/A   

 

Number of Electric Customers

  2016     2015    

Number of Gas Customers

  2016     2015  

Residential

    1,141,814        1,131,621     

Residential

    619,130        612,814   

Small Commercial & Industrial

    113,034        112,811     

Commercial & Industrial

    44,224        44,199   
       

 

 

   

 

 

 

Large Commercial & Industrial

    11,932        11,777     

Total Retail

    663,354        657,013   

Public Authorities & Electric Railroads

    282        286     

Transportation

    —          —     
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

    1,267,062        1,256,495     

Total

    663,354        657,013   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) Reflects delivery volumes and revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenue also reflects the cost of energy and transmission.
(b) Other revenue includes wholesale transmission revenue and late payment charges.
(c) Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.
(d) Transportation and other gas revenue includes off-system revenue of 2,496 mmcfs ($9 million) and 3,325 mmcfs ($23 million) for the three months ended March 31, 2016 and 2015, respectively.

 

13


EXELON CORPORATION

PEPCO Statistics

Three Months Ended March 31, 2016 and 2015

 

     Electric Deliveries     Revenue (in millions)  
     2016      2015      % Change     2016      2015      % Change  

Electric (in GWhs)

                

Retail Deliveries and Sales (a)

                

Residential

     2,218         2,590         (14.4 )%    $ 255       $ 261         (2.3 )% 

Small Commercial & Industrial

     381         464         (17.9 )%      37         41         (9.8 )% 

Large Commercial & Industrial

     3,945         3,607         9.4     200         187         7.0

Public Authorities & Electric Railroads

     189         185         2.2     8         8         —  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Retail

     6,733         6,846         (1.7 )%      500         497         0.6
  

 

 

    

 

 

      

 

 

    

 

 

    

Other Revenue (b)

             51         48         6.3
          

 

 

    

 

 

    

Total Electric Revenue

             551         545         1.1
          

 

 

    

 

 

    

Purchased Power

           $ 197       $ 211         (6.6 )% 
          

 

 

    

 

 

    

 

                          % Change  
Heating and Cooling Degree-Days    2016      2015      Normal      From 2015     From Normal  

Heating Degree-Days

     2,010         2,491         2,170         (19.3 )%      (7.4 )% 

Cooling Degree-Days

     3         —           3         N/A        N/A   

 

Number of Electric Customers    2016      2015  

Residential

     769,934         739,321   

Small Commercial & Industrial

     53,853         53,303   

Large Commercial & Industrial

     20,996         20,102   

Public Authorities & Electric Railroads

     126         126   
  

 

 

    

 

 

 

Total

     844,909         812,852   
  

 

 

    

 

 

 

 

(a) Reflects delivery volumes and revenues from customers purchasing electricity directly from Pepco and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from Pepco, revenue also reflects the cost of energy and transmission.
(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.

 

14


EXELON CORPORATION

DPL Statistics

Three Months Ended March 31, 2016 and 2015

 

     Electric and Gas Deliveries     Revenue (in millions)  
     2016      2015      % Change     2016      2015      % Change  

Electric (in GWhs)

                

Retail Deliveries and Sales (a)

                

Residential

     1,428         1,863         (23.3 )%    $ 182       $ 217         (16.1 )% 

Small Commercial & Industrial

     572         510         12.2     49         51         (3.9 )% 

Large Commercial & Industrial

     1,078         1,108         (2.7 )%      25         23         8.7

Public Authorities & Electric Railroads

     14         13         7.7     4         3         33.3
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Retail

     3,092         3,494         (11.5 )%      260         294         (11.6 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Other Revenue (b)

             43         41         4.9
          

 

 

    

 

 

    

Total Electric Revenue

             303         335         (9.6 )% 
          

 

 

    

 

 

    

Gas (in mmcfs)

                

Retail Deliveries and Sales (c)

                

Retail Sales

     6,060         7,878         (23.1 )%      53         79         (32.9 )% 

Transportation and Other (d)

     1,968         2,325         (15.4 )%      6         7         (14.3 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Gas

     8,028         10,203         (21.3 )%      59         86         (31.4 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Electric and Gas Revenues

           $ 362       $ 421         (14.0 )% 
          

 

 

    

 

 

    

Purchased Power and Fuel

           $ 176       $ 225         (21.8 )% 
          

 

 

    

 

 

    

 

                          % Change  
Heating and Cooling Degree-Days    2016      2015      Normal      From 2015     From Normal  

Heating Degree-Days

     2,247         2,865         2,449         (21.6 )%      (8.2 )% 

Cooling Degree-Days

     3         —           1         N/A        200.0

 

Number of Electric Customers

  2016     2015    

Number of Gas Customers

  2016     2015  

Residential

    453,670        451,299     

Residential

    120,046        118,549   

Small Commercial & Industrial

    59,860        60,486     

Commercial & Industrial

    9,772        9,556   
       

 

 

   

 

 

 

Large Commercial & Industrial

    1,418        1,287     

Total Retail

    129,818        128,105   

Public Authorities & Electric Railroads

    643        582     

Transportation

    158        160   
 

 

 

   

 

 

     

 

 

   

 

 

 

Total

    515,591        513,654     

Total

    129,976        128,265   
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) Reflects delivery volumes and revenues from customers purchasing electricity directly from DPL and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from DPL, revenue also reflects the cost of energy and transmission.
(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.
(c) Reflects delivery volumes and revenues from customers purchasing natural gas directly from DPL and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from DPL, revenue also reflects the cost of natural gas.
(d) Other revenue includes off-system natural gas sales and the short-term release of interstate pipeline transportation and storage capacity not needed to serve customers.

 

15


EXELON CORPORATION

ACE Statistics

Three Months Ended March 31, 2016 and 2015

 

     Electric Deliveries     Revenue (in millions)  
     2016      2015      % Change     2016      2015      % Change  

Electric (in GWhs)

                

Retail Deliveries and Sales (a)

                

Residential

     938         1,124         (16.5 )%    $ 150       $ 175         (14.3 )% 

Small Commercial & Industrial

     289         305         (5.2 )%      39         40         (2.5 )% 

Large Commercial & Industrial

     820         816         0.5     51         49         4.1

Public Authorities & Electric Railroads

     15         12         25.0     3         3         —  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total Retail

     2,062         2,257         (8.6 )%      243         267         (9.0 )% 
  

 

 

    

 

 

      

 

 

    

 

 

    

Other Revenue (b)

             48         67         (28.4 )% 
          

 

 

    

 

 

    

Total Electric Revenue

             291         334         (12.9 )% 
          

 

 

    

 

 

    

Purchased Power

           $ 158       $ 191         (17.3 )% 
          

 

 

    

 

 

    

 

                          % Change  
Heating and Cooling Degree-Days    2016      2015      Normal      From 2015     From Normal  

Heating Degree-Days

     2,270         3,041         2,523         (25.4 )%      (10.0 )% 

Cooling Degree-Days

     4         —           1         N/A        300.0

 

Number of Electric Customers    2016      2015  

Residential

     482,718         481,354   

Small Commercial & Industrial

     60,858         61,030   

Large Commercial & Industrial

     3,828         3,814   

Public Authorities & Electric Railroads

     583         553   
  

 

 

    

 

 

 

Total

     547,987         546,751   
  

 

 

    

 

 

 

 

(a) Reflects delivery volumes and revenues from customers purchasing electricity directly from ACE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from ACE, revenue also reflects the cost of energy and transmission.
(b) Other revenue includes transmission revenue from PJM and wholesale electric revenues.

 

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